Black pepper prices surge to 10-year high of Rs 750 per kg in Idukki

Idukki, Kerala: Black pepper prices in the district have climbed to a 10-year high of Rs 750 per kg, bringing cheer to farmers and traders who had stocked up on the spice in anticipation of a market rally.

The price touched Rs 750 on Tuesday. While small traders and cooperative societies in local markets purchased pepper from farmers at Rs 748 per kg, stockists and spice companies procuring directly from farmers offered as much as Rs 760 per kg.

The sharp rise in prices has translated into substantial gains for farmers and intermediaries who had held on to their stocks instead of selling them earlier.

Black pepper produced in Idukki, particularly in the High Range region, is known for its superior quality. Pepper with a higher litre weight — the weight of pepper measured using a one-litre container — fetches an additional Rs 20-30 per kg.

However, farmers and traders holding stocks are reluctant to release their produce into the market, expecting prices to rise further. This has left wholesale traders struggling to meet existing orders due to a shortage of available stocks.

Pepper prices: A decade of ups and downs

Black pepper from Idukki had fetched more than Rs 700 per kg around nine years ago. Prices subsequently witnessed several sharp fluctuations.

The market suffered a steep decline during the first wave of the COVID-19 pandemic, with prices falling to Rs 250-270 per kg. They recovered to Rs 400-420 per kg in March-April 2020 before declining again to Rs 370-390 per kg during the subsequent Omicron wave, according to the report.

Prices began recovering again in October 2021.

In the second week of July 2023, black pepper was procured at around Rs 490 per kg in High Range markets. By July 26, traders had increased their procurement price to Rs 560 per kg. Prices continued to rise gradually thereafter, eventually reaching the current 10-year high.